On 24 June 2022, the European Commission published the Commission Delegated Regulation (EU) 2022/975 (the "Delegated Regulation") in the Official Journal of the EU. This Delegated Regulation postponed the application date of particular disclosure requirements under Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products ("PRIIPS"). The Delegated Regulation also extended the application of Article 14(2) of Commission Delegated Regulation (EU) 2017/653 until 31 December 2022. As both of these expiration dates have now passed, the Commission de Surveillance du Secteur Financier (the "CSSF") have amended a number of FAQ documents in order to reflect these regulatory changes.
CSSF Update of FAQ concerning the Luxembourg law of 12 July 2013 on AIFMs
Section 23 of the FAQ relating to the AIFM Law sets out a number of questions and answers relating to the impact of the PRIIPS Regulation. Question A and B have been amended to reflect the implementation of the changes described in the opening paragraph, over the past month. The first confirms that manufacturers of Luxembourg Alternative Investment Funds ("AIFs"), the units of which are being advised on, offered or sold to retail investors, are required to draw up a PRIIPS Key Information Document ("KID"). The second clarifies that manufacturers of Luxembourg AIFs can no longer rely on the exemption from the requirement to prepare a KID, under Article 32(2) of the PRIIPS Regulation and all UCITS like Key Investor Information Documents ("KIID") defined bellow will need to be replaced with PRIIPS KIDs as of 1 January 2023 unless the AIF in question is no longer available to retail investors with the EU/EEA.
CSSF Update of FAQ concerning the Luxembourg law of 17 December 2010 relating to UCIs
The FAQ on the 2010 Law has been updated to conform to the requirement to prepare a PRIIPS KID as of 1 January 2023. This FAQ confirms that Luxembourg UCITS that are made available to retail investors in the EU/EEA are now required to draw up a PRIIPS KID i.e. they can no longer continue to use the UCITS KIID. UCITS that are solely available to professional investors or to investors outside the EU/EEA can continue to use the UCITS KIID. The PRIIPS KIDs for UCITS should have been filed on 1 January 2023. The CSSF are however accepting filings up to 31 January 2023. The CSSF is of the opinion that manufacturers of Luxembourg UCITS are not required to prepare a PRIIPS KID where a Luxembourg UCITS is no longer available to retail investors as of 1 January 2023. Manufacturers of Luxembourg retail UCITS whose offer was closed on 31 December 2022 are still required to annually update their UCITS KIID. Finally, the CSSF clarifies that the contents of the CSSF’s FAQ concerning the UCITS KIID are still of relevance to those UCITS being made available to professional investors or outside the EU/EEA and may continue to provide guidance, to UCITS using the PRIIPs KID in certain circumstances.
CSSF Update of FAQ on KIID
Questions 2, 9 and 11 of the FAQ relating to the KIID have been amended to provide clarifications on the procedure for filing KIIDs and the steps that must be fully completed before a UCITS may issue a unit/share class of a UCITS or compartment thereof. These steps now include the filing of the KIID relating to the unit/share class concerned, with the CSSF.
CSSF Update of FAQ concerning SIFs and SICARs that do not qualify as AIFs
This FAQ relating to SIFs and SICARs has been updated to clarify that manufacturers of Luxembourg SIFs and SICARs that do not qualify as AIFs, the units of which are being advised on, offered or sold to retail investors, are now required to draw up a PRIIPS KID. All references to the UCITS KIID and the exemption contained in Article 32 (2) of the PRIIPS Regulation have now been removed.
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